Exercise 7-14 Skysong, Inc.'s bank statement from Main Street Bank at August 31, 2022, gives the following information Balance, August 1 August deposits Checks cleared in August Bank credit memorandum: Interest earned $18,700 Bank debit memorandum: 71,300 Safety deposit box foe 68,578 Service charge Balance, August 31 145 $125 150 21,292 A summary of the Cash account in the ledger for August shows the following: balance, August 1, $19,000; receipts $743,000; disbursements $73,470; and balance, August 31, $19,830. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,900 and outstanding checks of $4,600. In addition, you determine that there was an error involving a company check drawn in August: A check for $400 to a creditor on account that cleared the bank in August was journalized and posted for $40 x Your answer is incorrect. Try again. Determine deposits in transit. Deposits in transit 7.900 Your answer is correct. Determine outstanding checks. (Hint: You need to correct disbursements for the check error.) Outstanding checks 9,852 SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT Your answer partially correct. Try again. Prepare a bank reconciliation at August 31. (List items that increase balance as per bank & books first.) SKYSONG, INC. Bank Reconciliation August 31, 2022 Cash balance per bank statement 21 292 7 Your answer is partially correct. Try again. Prepare a bank reconciliation at August 31. (List items that increase balance as per bank & books first SKYSONG, INC. Bank Reconciliation August 31, 2022 Cash balance per bank statement 21,2921 Add Deposits in transit 7,900 x 29,192 > Less Outstanding checks 9,852 19,340 Adjusted cash balance per bank V Deposits in transit 19,830 Add Interest earned 145 145 Add Interest earned 19,975 Less 150 Service charge Error in recording check 360 Safety deposit box rent 125 635 19,340 Adjusted cash balance per books Journalize the adjusting entries to be made by Skysong, Inc. at August 31. (Credit account titles are automatically Indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Aug. 31 (To record Interest earned) Aug. 31 M (To correct error in recording check) Aug. 31 (To record service charge and safety deposit box fee)